ADB forecasts 5% growth for Bangladesh in FY26, but US tariffs cloud outlook

Bangladesh’s economy is projected to grow by 5 percent in fiscal year 2025-26 (FY26), but new US tariffs on exports threaten to weigh on performance, the Asian Development Bank (ADB) has warned. In its Asian Development Outlook for September 2025, the Manila-based lender said services and agriculture are expected to drive economic expansion, supported by easing inflation, stronger household purchasing power, rising remittances and election-related public spending. But industrial growth is expected to slow after the United States imposed an additional 20 percent tariff on Bangladeshi exports in August. The new duties raise average tariffs on exports to the US from 15 percent to 35 percent, with apparel tariffs climbing from 16.8 percent to 36.8 percent and some products reaching...